In an industry with dulling revenues and profits, Shimano retains its glimmer. (Photo: Shimano) The cycling industry is struggling to align resources with reality. And it’s clear when the revenue data is sampled.
One of the most conservative cycling companies has diverged from the industry trend with a healthy balance sheet.
But what makes this deeply traditional cycling company so different, and notably more profitable, than many others?
The global cycling industry is suffering a slowdown. And it is not accidental.
Huge overordering and over-optimistic demand planning have created an overstock nightmare. A scenario compounded by record inflation numbers, diluting consumer spend.
And it’s not one of two niches in the cycling industry. Everyone is being challenged. In the digital realm, Strava and Wahoo have triggered retrenchment events in the last few months. And even one of cycling’s most esteemed brands, Specialized, has trimmed its global workforce by 8%.
Beyond core cycling, accessory suppliers are suffering too. Helmet and bike rack purchases are some of the best indicators of true new bike and rider demand. And here, Swedish brands Thule and MIPS are key data points.Thule experienced a 10.6% decrease in Q4 sales, year-on-year. More troubling is what MIPS corporate reporting reveals. The Swedish safety brand produces a patented slip-liner safety system, which features in most mid- to high-end cycling helmets. And it saw a 50% reduction in new helmet sales from 2021 to 2022.What’s gone wrong? It’s evident that the pandemic growth spurt in outdoor activity was an […]
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